COMPANY NEWS

COMPANY NEWS; TRUMP'S PLAZA HOTEL BANKRUPTCY PLAN APPROVED

Published: December 12, 1992

A Federal bankruptcy judge yesterday approved a prepackaged bankruptcy plan for Donald J. Trump's Plaza Hotel, giving a 49 percent stake in the luxury hotel to Citibank and five other lenders. Under the plan, Mr. Trump will still be employed as chief executive but he will not be paid and will not have a role in day-to-day operations, said Matthew Feldman, a lawyer representing the Trump Organization.

The hotel was unable to meet its debt service payments and filed for bankruptcy protection on Nov. 2. Lawyers said Mr. Trump would continue to work on marketing plans for the Fifth Avenue hotel, which overlooks Central Park in midtown Manhattan. The lenders, which include the Industrial Bank of Japan, will take control of the hotel in exchange for giving more favorable terms to Mr. Trump on more than $550 million in debt on the hotel. The plan was approved by United States Bankruptcy Judge Prudence Abram.